Over the past few years, Halifax has witnessed a notable decline in the sale of single-family homes, influenced by fluctuating mortgage rates and shifting economic dynamics. Let's delve into the data:

In June 2021, Halifax saw 603 single-family homes sold, coinciding with a mortgage variable rate of 2.15%. By 2022, home sales decreased to 563, correlating with a rise in the mortgage variable rate to 3.40%. This trend continued into 2023 and 2024, with home sales dropping to 489 and 460 respectively, as mortgage variable rates climbed to 6.65% and 6.90%.

Looking back further, in 2020, Halifax experienced a peak of 717 single-family home sales at a mortgage variable rate of 2.15%. The following years showed varying sales numbers: 573 homes in 2019, 597 in 2018, 620 in 2017, and 498 in 2016, each reflecting different mortgage variable rates.

Since the onset of the pandemic, Halifax has consistently recorded a decline in June home sales, with fewer sales each month. Several factors contribute to this decline:

1. Shifting Demographics: Post-pandemic, Halifax has seen a decrease in interest from Canadians relocating to the city. Provinces like Alberta, offering more job opportunities and affordable housing, have become more attractive.

2. Impact of Mortgage Rates: While homes priced under $500,000 remain relatively unaffected, higher variable mortgage rates since 2020, compounded by stringent mortgage stress tests, have limited the purchasing power of many prospective buyers.

3. Low Inventory and High Rentals: A shortage of homes for sale has contributed to a competitive market environment, driving up rental prices and dissuading potential sellers from listing their properties.

Despite avoiding recession over the past two years, Halifax's economy remains fragile, influencing consumer confidence and purchasing behavior. As we navigate these economic shifts, understanding these factors is crucial for both buyers and sellers in the Halifax real estate market.

Conclusion:

The decline in single-family home sales in Halifax reflects a complex interplay of economic factors, from rising mortgage rates to shifting demographic preferences. As we look towards the future, adapting to these market dynamics will be essential for both homeowners and industry professionals alike.